Divine Power Energy Shares Surge 284% on Debut
Jul 02, 2024 16:41
Divine Power Energy Ltd shares closed over 284% higher than its IPO price on Tuesday, driven by strong retail investor demand. The company manufactures insulated wires and strips.
New Delhi, Jul 2 (PTI) Shares of Divine Power Energy Ltd, a manufacturer of insulated wires and strips, on Tuesday made a remarkable debut, closing with a premium of more than 284 per cent against the issue price of Rs 40.
The stock was listed at Rs 155, reflecting gains of 287.50 per cent from the issue price on the NSE SME platform Emerge.
Later, shares of the company settled at Rs 150 apiece, down by 3.23 per cent.
At the close of the trading session, the company's market valuation stood at Rs 322.01 crore.
In volume terms, 31.44 lakh shares of the company exchanged hands on the bourse.
Last week, Divine Power Energy's initial public offering (IPO) was subscribed nearly 394 times on the final day, driven by an overwhelming response from retail investors.
The Rs 22.76 crore IPO is entirely a fresh issue of 56.90 lakh equity shares. The price band was Rs 36-40 per share.
The company proposes to utilise Rs 18 crore of the net IPO proceeds to meet its working capital requirements and plans to use the remaining capital for general corporate purposes.
DPEL manufactures copper and aluminium wires/strips insulated with paper, crepe paper, and fiberglass and supplies them to discoms and transformer manufacturers.
Its clientele include TATA Power, BSES, Uttar Pradesh Power Corporation Ltd and Uttarakhand Power Corporation Ltd.
Incorporated in 2001, DPEL is promoted by Rajesh Giri and Vikas Talwar.
The company posted a revenue of Rs 222.08 crore and a profit after tax of Rs 6.4 crore in FY2023-24.
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